Jim Meyer, the new CEO of Sirius XM Radio, said the satellite company is investing significantly in telematics, which includes automated car security and safety services like 24-hour support for accidents, as part of an aggressive strategy to expand the company’s consumers offerings, reports Automotive News.
Sirius XM has already signed a deal with Nissan and is currently looking for other carmakers that might be interested in the company’s services.
In addition to telematics, which includes feature such as road side assistance and stolen vehicle tracking, Sirius XM will also offer entertainment and “infotainment” services such as weather updates and gas prices, according to the auto industry news report.
Meyer said Sirius XM will look to build on the relationship the satellite company has had with carmakers for more than a decade installing satellite radios in vehicles on the assembly line.
“It’s not going to happen in six months. This is going to take a while. We’re working hard about what role we can play and what (the car makers) would like us to do,” Meyer told Automotive News.
According to Barclays research, the auto audio and infotainment area, which includes telematics, is a reported $15 billion-a-year industry. Information controls, which includes the display features in vehicles, is a $12 billion a year business.
The Automotive News report notes that the new Sirius XM services, which will include additional fees for customers, will use Sirius XM’s existing satellites.